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For what it was worth AK did state, in reply to my written question for the last Retail Investor Call,
"the Nigerian assets are in good condition and no significant investment needed".

Thats just milking last years news!

Interzone- The Yorkville/Riverfort facility was at a fixed rate of 7% for up to 3 months. The Oragroup SA revolving 11.4m euro loan facility is at an annual rate of 7.5% . $350k dollars in interest would have been paid if the Yorkville loan had been repaid after one day or three months. The Yorkville rate was therefore much more expensive than the Oragroup rate but was not paid back early as there would be no point.

Please forgive me if this is a naive question but in the 7E deal RNS (15 Nov) SAVP advised that there no shares held in Treasury.
"Following the issue of the Consideration Shares, the Company will have 996,408,412 Ordinary Shares in issue and there are no shares held in Treasury."
If there are no shares in Treasury and there have been no subsequent resolutions passed to issue more shares, where do the shares come from to repay the loan?

https://realassets.ipe.com/news/aiim-african-infrastructure-fund-expands-into-nigerian-gas-market/10043259.article

Of the $2.1m dollars paid to AK $1.4m was a bonus. In its annual report the company states that the purpose of the bonus is " to encourage and reward delivery of the groups objectives". The report also states the bonus will not be paid until the 7E deal is completed, I therefore attribute the 2018 bonus to the completion of the 7E deal, even though the deal wasn't completed until 2019. If you measure delivery of the groups objectives by the success in delivering its stated KPI's on pages 12 and 13 of the annual report, it is difficult to see how any bonus can be paid for 2019. It is the failure to deliver on the 2019 KPI's that has in part suppressed the share price and consequently shareholder value, any payment for 2019 should be challenged but earlier payments are history.

Copy of Agadem's questions sent to Jimmy Lea as well.

Lets hope not! The focus in 2020 should be producing not acquiring, SAVP need to prove to the market that the assets they now have will produce cash. Imo its the only way we will see sustained share price growth.

Z- Your share dilution maths are valid but there are three short term negatives that can't be ignored:
1. The message that is sent to the market that we need cash.
2 The message sent to future lenders that we repay debt with shares.
3 There will be another 19m shares for sale to repay Riverfort/Yorkville the cash they would probably prefer.

Agreed shareideas - IMO the only reason the share issue was included as a repayment option was in case the 7E deal did not conclude.

On Aim, London’s junior market, Savannah Petroleum was keeping the City’s brokers busy. A whopping 67.2 million shares in the junior oil company were traded. To put that into context, it would typically take more than a month for that much of the stock to be bought and sold.

Savannah finalised a deal to buy a Nigerian oil firm, Seven Energy, out of administration last month. As part of that agreement it issued shares to one of Seven’s creditors, which it is now believed to have offloaded.

“In our view this overhang goes some way in explaining the share price performance since the Seven Energy deal completed,” said Tim Hurst-Brown, an energy analyst at Mirabaud Securities, who added that the seller was now “seemingly clear”.

Savannah shares jumped by 1p, or 4.9 per cent, to close at 21¼p.

Google Translate

Translation from Jaran.mn
It has been established that Petro Matad has approved an exploration drilling plan for oil exploration in the area of Matad soum in the Eastern province of Matad soum of the Eastern province.It has been found that the use of 6 hectares of land at 2 locations with the permission of a competent authority has been illegal. Thierry delivered two declarations of land withdrawal and two directives from Dornod aimag and Matad soum since May or after its operation, but did not comply with Petro Matad's requirements.
For this reason, the next level of legal action or Dornod province governor's order for the land acquisition was released on 11 November this year by the police control of the illegally operating land of Petro Matad.

The Nigerian CPR from CGG and a Nigeria operational and trading update this morning which show what very high quality assets that have been bought and with incredibly robust numbers. The CPR confirms gross and net 2P reserves of 99.6 mmboe and 71m mmboe respectively and 2C gross and net resources of 98 mmboe and 58.6 mmboe. The Nigeria assets have a gross NPV 10 of $1.2bn gross, $957m net to SAVP.

Net free cash flow generation by the Nigerian assets assessed by CGG are as an average of $130m p.a. (20-23) with gross 2019 ytd production of 17.3 kboepd up 33% y/y. 2019 guidance for cash collection from the Nigerian assets is c.$190m leading to a $40m reduction in debt 2019/2018 in total third-party debt outstanding at the Nigerian Assets and a forecast YE’19 cash position within the Nigerian Assets of a minimum of US$15m. Finally, forecast 2020 capital expenditure at the Nigerian Assets of c.$41.5m proves the cash flow more than covers expenditure where production costs have been cut sharply.

There is no doubt that, although taking longer to complete the paperwork, SAVP have got a gem of an acquisition here making it a ‘proper company’ with substantial cash flows from a high quality asset base. As CEO Andrew Knott says ‘We continue to view these assets as a strong platform from which we will deliver further growth. In this regard, we continue to make good progress in relation to the supply of gas to potential new customers, and are investing in additional well stock to ensure anticipated future production levels are capable of being met. I look forward to providing further updates on this in the near-term.’

Make no mistake this is a very reassuring update, the CPR numbers are very much in line with expectations and the confirmation of the excellent cash flow generation puts paid to any lingering concerns in the market about the performance of the Nigerian assets. Accordingly I remain convinced that my 75p a share target for SAVP is easily achievable, indeed a starting point for what is a very good company indeed.

Thanks Tier

It should be possible to download from the following link.

https://drive.google.com/file/d/1UILjwmw24DYEf64Bb3P8Ik-XcGB99krp/view?usp=sharing

https://allafrica.com/stories/201911220631.html

MoneyMan
AK didn't mention where the funds have gone, but I am not sure it is relevant to SAVP. We have bought the assets from an insolvent company and following the High Court approval Seven Energy have gone into receivership. If there was any FCF in Severn Energy it was probably used to keep the lights on for the last two years.

I am not sure its that the market doesn't like the Nigerian assets but is sceptical that a distressed asset purchase will produce the FCF claimed. I have asked AK in tomorrows retail call if there is any significant cash required to give any Nigerian unloved assets some TLC. AJ10 is spot on when he calls for meat on the bones and more definitive timelines for the various work streams that must have been progressed during the long wait. Without it PI's will understandably loose patience.

With a three month daily average volume of approximately 2m shares and assuming the buys and sells are roughly equal, VR Global Partners would have had to "hoover up" approximately 35% of all shares sold! More likely there have been transfers between II's or perhaps some of the 'consideration shares' have ended up with VR Global Partners with Savannah's consent?
No doubt we will find out when the Major Shareholders web page is updated.

Gr33ning68 - This is the extract from the Dec '17 Admission Document:

The new Ordinary Shares to be issued to the holders of the SSNs and the Second Bilateral Facility pursuant to the Capital Restructuring (please refer to the Transaction Overview in Part 2 of this document for further details) will be subject to lock-in provisions that will restrict transfers of such shares for a period of six months from their date of issuance without Savannah’s prior consent in order to ensure an orderly market in the Ordinary Shares.